Options Boot Camp

Basic Training: Exercise, Assignment, and Settlement.

There are two styles of options you will encounter -- American and European style. What's the process when your exercises and assignments are determined? When do those contracts settle? How do I determine if my options are going to be exercised or assigned against me? What is pin risk? What is a dividend trade?

Mail Bag: Even options recruits get mail privileges. Send those letters in.

• Email question from Alan P - Michigan: You guys have talked about the difficulties of executing multi-leg spreads in the past. What should I, as a retail options trader, be aware of when executing my spreads to guarantee better execution?
• Tweet from Riley: Are there any plans to speed up exercise and settlement in the options market?
• Facebook question from Dan Thomas: Isn't it a good thing for my call that aren't in the money to be exercised against me? Doesn't that mean that I'm locking in a profit by buying or selling stock at a more favorable price then where it's currently trading?

Basic Training: Exercise, Assignment, and Settlement.

There are two styles of options you will encounter -- American and European style. What's the process when your exercises and assignments are determined? When do those contracts settle? How do I determine if my options are going to be exercised or assigned against me? What is pin risk? What is a dividend trade?

Mail Bag: Even options recruits get mail privileges. Send those letters in.

• Email question from Alan P - Michigan: You guys have talked about the difficulties of executing multi-leg spreads in the past. What should I, as a retail options trader, be aware of when executing my spreads to guarantee better execution?
• Tweet from Riley: Are there any plans to speed up exercise and settlement in the options market?
• Facebook question from Dan Thomas: Isn't it a good thing for my call that aren't in the money to be exercised against me? Doesn't that mean that I'm locking in a profit by buying or selling stock at a more favorable price then where it's currently trading?

Basic Training: Spreads with wings.

What is a butterfly? Iron butterfly? What is a condor? Iron condor?

Mail Call: Even bootcampers get mail privileges

• Email from Alan Rick: What makes a spread "iron?" What is the difference between an iron butterfly and a regular butterfly, iron condor, etc. Thanks and please keep up the show; I'm learning a ton!
• Email from Alan Charter: If I think a stock's volatility is elevated going into earnings, should I write an iron condor or an iron butterfly? Which is the better trade?
• Tweet from Mr. Dockerson: AAPL! AAPL! AAPL! What are your favorite Apple spreads right now?

Basic Training: Spreads with wings.

What is a butterfly? Iron butterfly? What is a condor? Iron condor?

Mail Call: Even bootcampers get mail privileges

• Email from Alan Rick: What makes a spread "iron?" What is the difference between an iron butterfly and a regular butterfly, iron condor, etc. Thanks and please keep up the show; I'm learning a ton!
• Email from Alan Charter: If I think a stock's volatility is elevated going into earnings, should I write an iron condor or an iron butterfly? Which is the better trade?
• Tweet from Mr. Dockerson: AAPL! AAPL! AAPL! What are your favorite Apple spreads right now?

Basic Training: A quick review of spreads.

What are spreads? Why should we use spreads? How do the Greeks work with spreads? How do you calculate, performance, etc? Why do I want to net reduce my delta and exposure in these elements? What are some of the downsides to spreads?

Options Drills: Vertical Spreads

Verticals - What are they? Long verticals vs. Short verticals. Credit spreads vs. debit spreads. You'll experience the maximum profit when the underlying moves to or sits at the short strike of that spread. What are collared spreads?

Mail Call: It's your turn to pick on the drill instructors.

TWEET FROM PHIL S: What's the deal with options spreads? Why can't my orders get filled? How do we fix this problem?

JOHN'S CUSTOMER QUESTION: How do I know if a spread is worth doing or has some "trade" value?

Basic Training: A quick review of spreads.

What are spreads? Why should we use spreads? How do the Greeks work with spreads? How do you calculate, performance, etc? Why do I want to net reduce my delta and exposure in these elements? What are some of the downsides to spreads?

Options Drills: Vertical Spreads

Verticals - What are they? Long verticals vs. Short verticals. Credit spreads vs. debit spreads. You'll experience the maximum profit when the underlying moves to or sits at the short strike of that spread. What are collared spreads?

Mail Call: It's your turn to pick on the drill instructors.

TWEET FROM PHIL S: What's the deal with options spreads? Why can't my orders get filled? How do we fix this problem?

JOHN'S CUSTOMER QUESTION: How do I know if a spread is worth doing or has some "trade" value?

Options Bootcamp 12: Weekly Options

Basic Training: What are weekly options? How do the Greeks differ in the weeklies? How are the weeklies traded?

Option Drills: Selling strategies for weekly options. Diagonal and vertical spreads, straddles, ratios, etc. What are some strategies for selling weeklies around earnings?

Mail Call: Taking on your questions.

• Tweet from @JJacks: Does Sogo trade offer weekly options? What approval level do I need to trade them?
• Email from Theodore in Houston, TX: How long does it really take to learn options and become a good options trader?
• Email from Alex S. in Tusla, OK: My financial advisor doesn't know anything about options and doesn't seem inclined to learn. Should I fire him? If so, where do I find an advisor who uses options?

Options Bootcamp 12: Weekly Options

Basic Training: What are weekly options? How do the Greeks differ in the weeklies? How are the weeklies traded?

Option Drills: Selling strategies for weekly options. Diagonal and vertical spreads, straddles, ratios, etc. What are some strategies for selling weeklies around earnings?

Mail Call: Taking on your questions.

Basic Training: Busting Options Myths:

1) Market makers know where the stops are, therefore market makers who take the other side of trades are taking advantage of retail customers.

2) The only way to trade profitably is to be a dark side short premium seller. Plus, credit spreads are better than debit spreads.

3) I only need to be good at one trading strategy.

4) Option trades and spreads in particular are difficult to execute and should only be handled by professionals with years of experience.

5) Options are too risky for the retail customers.

Mail Call: Our drill instructors answer your questions.

Email From Alan Donson: Your format is excellent. Please add more pure options trade/content and feature John Critchley. Your intense focus on real options information with a view to options profits, not tedious theory is highly appreciated.

TWEET FROM @ReallyG: You suggested put buy as an ASET to limit buy order? Certainly not in the gap below strike scenario your guests were discussing.

Basic Training: Busting Options Myths:

1) Market makers know where the stops are, therefore market makers who take the other side of trades are taking advantage of retail customers.

2) The only way to trade profitably is to be a dark side short premium seller. Plus, credit spreads are better than debit spreads.

3) I only need to be good at one trading strategy.

4) Option trades and spreads in particular are difficult to execute and should only be handled by professionals with years of experience.

5) Options are too risky for the retail customers.

Mail Call: Our drill instructors answer your questions.

Email From Alan Donson: Your format is excellent. Please add more pure options trade/content and feature John Critchley. Your intense focus on real options information with a view to options profits, not tedious theory is highly appreciated.

TWEET FROM @ReallyG: You suggested put buy as an ASET to limit buy order? Certainly not in the gap below strike scenario your guests were discussing.